BOISE, Idaho — A viral video about the affordability of all-inclusive resorts compared to rent has a lot of people talking, so does a new study from Bankrate.
The Bankrate study suggests that buying a home is so expensive, renting is now cheaper in all 50 of this country's biggest cities. Bankrate compared monthly mortgage payments to current rents. If those results do not surprise you, it's probably because you live around here.
According to Keller Williams Mortgage Payment Calculator, with a median-priced home in Ada County, with 20 percent down, at current rates, your monthly mortgage payments will be $3,504.32. That includes principal, interest, and tax. That's a lot. Meanwhile, the average rental payment is $1,245, according to Apartment List. That's only for a 2-bedroom. But even if you're renting a 4-bedroom, you'd still be well under that mortgage payment.
Alex Gailey, a Bankrate analyst, says, "Buying a home is pretty expensive due to high mortgage rates, high home prices, and there's also a lot of competition in the market, because there is low inventory."
Financial experts say buying a home and building equity is smarter than renting, but with those costs so high, it's just not an option for some folks. So, renting is the only option, right? Not necessarily.
Recently, travel expert Ben Keenan went viral when he discovered that a month at an all-inclusive resort was cheaper than living in his Seattle apartment. Again, an all-inclusive resort was cheaper than his rent and other expenses the resort would cover. But that's Seattle. Would that work here?
For two people, if you add rent, utilities, car, insurance, groceries, going out, WIFI, and gym for Ada County, the total was $3,375. An all-inclusive resort in the Dominican Republic that would cover all those same expenses for about one hundred dollars less. Bottom line, on average, two people living at the cheapest all-inclusive resort I could find, would be more affordable than them living in an Ada County apartment.
Your mileage may vary on a lot of these costs, like if you don't go out to eat or drink a bunch or if you use public transportation and don't have those car costs. You'd also have to work and go to school remotely. But the fact that this is even a conversation is revealing for how much the cost of living and housing has gone up in this area, at an even greater pace than the rest of the country.
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